Tension in West Asia brought bad news for India, now how will the dream of developed India come true?

India’s GDP Growth: India has set a target of becoming a developed nation by 2047 and is moving rapidly in this direction. Despite high tariffs, the country’s GDP has continued to perform strongly. However, global uncertainty is emerging as a major challenge to India’s economic growth. This is what Nagesh Kumar has to say, who is a member of the Monetary Policy Committee of the Reserve Bank of India.

Amidst the ongoing tension in West Asia, he says that this can become a big challenge for the Indian economy in the near future, although it is not likely to have a significant impact on India’s growth pace in the long term.

Impact of West Asia tension

According to Nagesh Kumar, better coordination between fiscal and monetary policies is necessary to maintain the country’s GDP growth rate at a high level. In the current circumstances, challenges like increase in oil prices, interruption in exports and impact on remittances coming from abroad may come to the fore. He said in an email interview to news agency Press Trust of India that rising tensions in West Asia could lead to increased oil prices, disruption in exports to that region and could impact the safety of NRIs as well as the money they send.

impact of oil prices

Nagesh Kumar said that due to the attacks by America and Israel in the near future, there is a possibility of conflict in the region intensifying and crude oil prices increasing further. However, he expressed hope that considering the importance of this sector at the global level, the crisis can be resolved soon. He also said that the risk can be reduced by diversifying the sources of oil supply.

Opening up of oil supply from Venezuela can also be helpful for India, as it will increase import options. At the same time, if the West Asia crisis ends soon and the sanctions imposed on Iran are lifted, then India can benefit from the supply of cheap oil. He also said that despite the current geopolitical tension, inflation in the country is expected to remain under control.

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